Royal Bank of Scotland in investor dispute offer

Royal Bank of Scotland pursued last-minute settlement talks with a group of investors to avoid a potentially embarrassing trial over allegations the lender misled them about a 2008 capital increase.

A successful settlement would save former RBS chief executive Fred Goodwin from facing scrutiny in the courts over his decision-making and leadership at the time the lender almost collapsed. RBS — which also owns Ulster Bank — has doubled its offer to the remaining claimants as it seeks to settle the case, according to sources.

The civil trial brought by thousands of RBS investors was due to open at the high court in London on Monday but was adjourned for a day to allow the settlement talks to continue. The plaintiffs allege former executives gave a misleading picture of the bank’s financial health ahead of a £12 billion (€14bn) cash call in 2008. Months after the cash call, RBS had to be rescued by the UK government with a £45.8bn (€53bn) bailout.